Right of First Refusal to Purchase Premises Clause (Commercial Lease) (Pro-Tenant)
Summary
This right of first refusal to purchase premises clause may be used in a commercial lease agreement to grant the tenant a right of first refusal to purchase the leased premises. This clause favors the tenant and contains practical guidance, optional landlord clauses, and drafting notes. Landlords generally disfavor rights of first refusal because such a right requires the landlord to secure an offer to purchase from a third-party without any assurance that the tenant will not simply exercise its right of first refusal and purchase the premises. A pro-tenant clause is generally only found in a lease for premises that would be difficult to sell due to problematic features or market conditions. A right of refusal is generally only granted by a landlord to a tenant of a freestanding, rather than multi-tenant, building. Tenants of a freestanding building who enter into long-term leases with the landlord may be most successful in bargaining for a right of first refusal. The terms used in the ...